Thanks to a number of contracts with large computer makers, ATI Technologies has managed to capture 27% of AMD-compatible chipset market. By contrast, the share of NVIDIA Corp. fell tangibly due to the absence of low-cost AMD64-compatible platforms with integrated graphics.

“It was a bit surprising that ATI could take a massive 27% share of the AMD chipset market with the introduction the RADEON XPRESS 200-series chipsets in just one quarter,” said Andrzej Bania, a representative for ATI Technologies in London, UK.

AMD processors-compatible chipset market accounts for 13% of the whole core-logic market. NVIDIA currently commands 35% of the market, down 20% from the previous quarter, according to data by Mercury Research. ATI commanded 27% of the market in Q2, up from virtually nothing in Q1 2005. VIA Technologies and Silicon Integrated Systems share the rest 38%.

“We currently have no competitive [AMD64 chipset] product with low-end integrated graphics, the market where ATI has gained its share,” an NVIDIA spokesman told X-bit labs.

ATI also managed to moderately improve its shipments of integrated chipsets for mobile computers and now commands 15% of portable integrated market. By contrast, Intel’s share is down 2.5% to 79%. SiS and VIA control 2% and 4% of the market respectively.

Despite of massive loss in AMD-compatible chipsets market, NVIDIA’s overall chipset market share is 6%, down 1% sequentially, whereas ATI’s share is about 3%, according to Mercury Research. The world’s largest chipset maker is Intel Corp.

NVIDIA Corp. is currently gearing up to launch its C51-series of chipsets with integrated graphics for entry-level computers, which will offer competition to ATI’s RADEON XPRESS 200-series products. In addition, the firm is expected to introduce a core-logic for Intel-based value computers later this year.